• Health Policy and Management
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• v.25 no.2
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• pp.97-106
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• 2015

Background & Methods: The purpose of this research is to estimate the efficiency of the pharmaceutical firms and the determinants of their efficiency. Stochastic frontier analysis(SFA) and panel study are applied to the data of 60 domestic pharmaceutical firms from 2006 to 2012. Results & Conclusion: First, the result of the stochastic frontier analysis shows that overall efficiency of the pharmaceutical firms is increasing as time goes by. However, if firms are classified by the scale, the larger firms show more efficiency and if classified by the degree of innovativeness, the innovative firms show more efficiency compared to the non-innovative firms. This evidences show that the scale and R&D investment have significant relationships with the efficiency of the pharmaceutical firms. Therefore, it is necessary to increase the national level of investment for the fundamental researches to vitalize R&D of the new drugs. Second, the result of estimation of the determinants of efficiency shows that the firms with larger sales promotion expenses and entertainment expenses have less efficiency compared to the other firms. This can be explained by the structural characteristics of the small generic pharmaceutical firms. Therefore, the government had better make the pharmaceutical firms to reduce sales promotion and entertainment expenses and increase R&D expenses by introducing systems such as global budgeting system on medicine or reference pricing system.

• Journal of Korea Technology Innovation Society
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• v.15 no.3
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• pp.649-674
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• 2012

The purpose of this study is to investigate the effects of public R&D subsidies on private R&D. We have analyzed rationales for the public R&D subsidy from different perspectives. On the basis of literature review, a two step research model is constructed: participation phase (when firms benefit from public subsidies) and decision phase (when firms make decision on additional R&D investments). Using propensity score matching(PSM) method, we compare the potential outcome of the treated group to a matched controlled group of non-subsidized firms. The data used in this paper was collected from various sources. The Korean Innovation Survey 2008(manufacturing sector) is a main source of data. Financial data such as revenue, asset and capital stock, and number of employees were supplemented from the Nice Information Service KIS Value database. The R&D survey, conducted by MEST(Ministry of Education, Science and Technology) each year, was also used for the R&D expenditures of the manufacturing firms. This study comes up with the following empirical results. First, a firm's innovation capability, financial constraints, and sector appear to influence the selection of firms who were benefited from government's financial supports for R&D. Second, empirical results show that public R&D funding complements private investment on average and appear to have perpetual effects on the following year. Finally, sectoral difference in the effect of public subsidies on firms' R&D investment was confirmed. In addition, SMEs show more positive effects than large firms.

• Information Systems Review
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• v.19 no.4
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• pp.1-25
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• 2017

Despite high uncertainty on financial return, firms have continuously increased their investment on technologies because they recognize the potential value of technology investment in terms of enhancing operational efficiency and sustaining competitive advantage. Notably, an individual technology investment pattern or strategy within an industry may ultimately lead to significant differences in business performance. Hence, we first categorized technology investment into traditional research and development investment and information technology investment. Afterward, we examined the effects of each pattern with combination of the two types of technology investment on business performance according to firm size and position in the supply chain through fuzzy-set qualitative comparative analysis. Data collected from 562 manufacturing firms in Korea were used in the analysis. Results showed that large-sized firms were slightly affected with microscopic patterns in their technology investments, whereas small firms were highly affected with their technology investment patterns and their positions in the supply chain. The findings implied that a small enterprise requires an appropriate technology investment strategy to achieve successful business outcomes.

• Journal of Technology Innovation
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• v.23 no.3
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• pp.67-85
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• 2015

This study investigates the relationships among SMEs' innovation capacity, standardization education activities, and performances. Employing about 900 SMEs in the ICT and electronics electricity industries, this study used regression analysis and examined the effects of standardization education activities on performance and the moderating effect of innovation capacity. The results indicate that standardization education activities positively affect SMEs' production and quality improvement and R&D activity improvement. The results also show that R&D investment ratio moderates the relationship between standardization education and production and quality improvement. This study provides practical insight into why firm managers should pay attention to standardization education and innvation capacity to improve firm performance.

• Journal of Korea Technology Innovation Society
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• v.3 no.2
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• pp.94-110
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• 2000

This article prospects the patterns of technological innovation in the steel industry and suggests the directions of technological innovation in Korean steel industry. Technological innovation patterns can be analysed through technological trends, innovation-inducing mechanism, and innovators' relationships. In the technological trends, direct coupling of manufacturing processes, lasting growth of mini-mill, and the importance of technological integration are prospected. In the innovation-inducing mechanism, while production system will be specialized, the development of new steel materials and environment-friendly technological innovation will be accelerated. In the innovators' relationships, steel industry faces more complex competition and new forms of inter-firm cooperation including M&A, joint venture, and joint R&D. In order to cope with such changes in the technological innovation patterns, Korean steel industry need to establish core competence based on technological innovation through a great leap in R&D investment, the production of high value-added products, the development of new generation steel technologies, strategic joint R&D, comprehensive technological cooperation, and government's active support.

• Asia Marketing Journal
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• v.12 no.3
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• pp.25-41
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• 2010

Customer participation is a strategic tool to facilitate the process of developing new products. This study distinguishes between two types of customer participation - customer codevelopment and contract development, and examines the benefits of customer codevelopment relative to contract development for firm value through an event study. The analysis of customer participation announcements in the biotechnology and pharmaceutical industries shows that the benefits of customer codevelopment relative to contract development on firm value are contingent upon firm- and relationship- level factors. Specifically, this study finds that the announcement of customer codveloplment contributes better to abnormal stock returns of a firm when the firm has a higher level of R&D relationship experience or when the customer codevelpment is complemented by formal contract terms, such as equity investment. The findings of this study provide important theoretical and managerial implications by revealing the boundary conditions for the benefits of customer codevelopment relative to contract development.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.6
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• pp.147-157
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• 2023

This paper investigates the financial factors affecting angel investors' investment decisions for 818 firms from 2009 to 2018 in the Korean venture investment market. We construct a quasi-experimental design using propensity scoring matching and compare the investment determinants between investment firms and matching firms. The main empirical findings are as follows. First, we find that angel investors are more likely to choose firms based on a firm's growth such as profit and assets rather than profitability or financial stability. In addition, we identify that they prefer the firm not only higher intangible assets but also higher R&D expenditures. Second, we find that angel investors consider both growth and activity ratios in the firms for over three years and have entered the mid-stage of startups. Overall, we confirm that the investment decision of angel investors mainly focuses on the venture startups' growth trend or future growth potential rather than the realized profitability or financial stability. We also infer that the possibility of performance creation is an important investment factor along with growth for the mid-stage startup.

• Management & Information Systems Review
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• v.28 no.4
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• pp.109-129
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• 2009

This study aims at investigating the effectiveness of SME's R&D system empirically. Specifically, this study analyze the relationships among R&D inputs(R&D investment, R&D human resource management), process(R&D planning, external network, internal cooperation), and output(technological innovation). A questionnaire was developed to measure the above variables. To test these relations, data were collected from the small and medium-sized IT firms located in Daegu-Kyungbuk region. The survey data of 154 firms were integrated as the empirical base for testing the relations. Most respondents were from the managers. Structural equation modeling analyses were used to examine the relations. Major results are as follows: Firstly, R&D HRM was positively and significantly influenced on the R&D planning. Secondly, R&D planning was positively and significantly affected on the external network, internal cooperation, and technological innovation. Thirdly, the both relations between R&D investment and R&D planning, and external network and technological innovation were not significant statistically. These results suggest the following implications. First, R&D human resource management is very important for IT SMEs. Secondly, internal cooperation mediates R&D inputs and technological innovation by approaching the other department's unique resources and by sharing the cost of new resource development. Several future researches need to overcome the limitations of this research. First, this study's sample was based on the small and medium-sized IT firms just located in Daegu-Kyungbuk region. This limitation may imply that empirical results can not represent overall small and medium-sized firm's situations. Therefore, future research needs to include different samples. Secondly, this study depends on the latitudinal study.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.17 no.2
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• pp.33-51
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• 2022

This study analyzes newly listed companies on KOSDAQ from 2011 to 2020 for both firms having experience in attracting venture investment before listing (VI) and those without having experience in attracting venture investment (NVI) by examining differences between two groups (VI and NVI) with respect to both the level of listing performance and that of firm performance (growth) after the listing. This paper conducts descriptive statistics, mean difference, and multiple regression analysis. Independent variables for regression models include VC investment, firm age at the time of listing, firm type, firm location, firm size, the age of VC, the level of expertise of VC, and the level of fitness of VC with investment company. Throughout this paper, results suggest that listing performance and post-listed growth are better for VI than NVI. VC investment shows a negative effect on the listing period and a positive effect on the sales growth rate. Also, the amount of VC investment has negative effects on the listing period and positive effects on the market capitalization at the time of IPO and on sales growth among growth indicators. Our evidence also implies a significantly positive effect on growth after listing for firms which belong to R&D specialized industries. In addition, it is statistically significant for several years that the firm age has a positive effect on the market capitalization growth rate. This shows that market seems to put the utmost importance on a long-term stability of management capability. Finally, among the VC characteristics such as the age of VC, the level of expertise of VC, and the level of fitness of VC with investment company, we point out that a higher market capitalization tends to be observed at the time of IPO when the level of expertise of anchor VC is high. Our paper differs from prior research in that we reexamine the venture ecosystem under the outbreak of coronavirus disease 2019 which stimulates the degradation of the business environment. In addition, we introduce more effective variables such as VC investment amount when examining the effect of firm type. It enables us to indirectly evaluate the validity of technology exception policy. Although our findings suggest that related policies such as the technology special listing system or the injection of funds into the venture ecosystem are still helpful, those related systems should be updated in a more timely fashion in order to support growth power of firms due to the rapid technological development. Furthermore, industry specialization is essential to achieve regional development, and the growth of the recovery market is also urgent.

• Journal of Technology Innovation
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• v.18 no.1
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• pp.153-175
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• 2010

Firms must focus on innovative activities via R&D investment in order to secure competitive advantage and sustainable growth. However, their innovative activities do not always result in successful outcomes and are often obstructed by uncertainty and non-appropriability of technology being developed and by insufficient internal resources and capabilities to tap into it. In this situation, collaboration with external partners can be a part of good alternative strategy to solve those problems. This paper aims to analyze what factors lead to Korean manufacturing companies’ decision to collaborate with external partners for technology innovation. For empirical analysis, we used the Korean Innovation Data compiled by STEPI, government-funded research institute in Korea. The research findings are: 1) firms tend to participate in external collaboration for product innovation with greater firm size, more past collaboration experiences and when they belong to high-tech industries 2) unlike our expectation, our chosen ‘innovation-impeding’ factors are found not to contribute to the enhancement of collaboration for product innovation.